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Optimization, Dynamics, and Economic Analysis pp 163–169Cite as

A Note on Investment, Credit and Endogenous Cycles

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Summary

In a recent paper Faria and Andrade (1998) present a model of two different representative agents, borrowers and lenders, and investigate conditions such that the borrower’s problem results in a cyclical relationship between capital and loans by applying Hopf bifurcation theory. Nevertheless, the question about the existence of stable cycles is still unresolved. In this note a numerical example leading to stable cycles is presented.

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References

  1. Ascher U., J. Christiansen and R.D. Russell, (1978), A collocation solver for mixed order systems of boundary value problems, Mathematics of Computation vol. 33, pp. 659–679.

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  2. Faria J.R. and J.P. de Andrade (1998), Investment, credit and endogenous cycles, Journal of Economics, 67, No. 2, pp. 135–143.

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  6. Steindl A., (1981), “COLSYS”, ein Kollokationsverfahren zur Lösung von Randwertproblemen bei Systemen gewöhnlicher Differentialgleichungen, Diplomarbeit an der Technischen Universität Wien.

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Author information

Authors and Affiliations

  1. Department of Statistics and Decision Support Systems, University of Vienna, Austria

    Andreas J. Novak

Authors
  1. Andreas J. Novak
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Editors and Affiliations

  1. Department of Business, University of Vienna, Brünnerstraße 72, A-1210, Vienna, Austria

    Engelbert J. Dockner  & Richard F. Hartl  & 

  2. Vienna University of Economics and Business Administration, Augasse 2-6, A-1090, Vienna, Austria

    Mikulas Luptačik

  3. Department of Economics, Queen Mary & Westfield College, Mile End Road, GB-London, E1 4NS, UK

    Gerhard Sorger

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© 2000 Springer-Verlag Berlin Heidelberg

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Novak, A.J. (2000). A Note on Investment, Credit and Endogenous Cycles. In: Dockner, E.J., Hartl, R.F., Luptačik, M., Sorger, G. (eds) Optimization, Dynamics, and Economic Analysis. Physica, Heidelberg. https://doi.org/10.1007/978-3-642-57684-3_13

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  • DOI: https://doi.org/10.1007/978-3-642-57684-3_13

  • Publisher Name: Physica, Heidelberg

  • Print ISBN: 978-3-642-63327-0

  • Online ISBN: 978-3-642-57684-3

  • eBook Packages: Springer Book Archive

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